New Investigation Renews Scrutiny of Firearms Agency

By

Evan Perez

Updated Jan. 17, 2013 8:12 p.m. ET

WASHINGTON—A former federal official who helped oversee an ill-fated effort to stem gun trafficking is under investigation for allegedly carrying on a private trade in firearms—a potential new blow to the agency that is poised to play a big role in the administration's gun-control efforts.

The official's alleged private gun trade came to light when Mexican authorities asked the Bureau of Alcohol, Tobacco, Firearms and Explosives to trace the origin of firearms found at the scene of an hourslong gunfight in November between...